My friend, who was in US in 2008, returned to India for good and has closed his bank account in the USA. He asked me to file his 2008 taxes, from which he is expecting a refund. Can he endorse the check in my favor, so I can deposit it in my account and then settle the same with him? I don't mind doing it for him, and I can get an authorization from my friend to deposit the check in my account. Is this possible?
Yes, a U.S. Treasury check can be negotiated to a third party; however, consider that your bank may be unwilling to accept the check for deposit to your account. Many banks have adopted policies that don't allow the deposit of third-party checks except by certain businesses. That's because the bank doesn't know the payee of the check and can't verify the payee's endorsement. A claim of forged endorsement could be pursued against the bank for up to three years (18 months on a Treasury check); therefore, before you commit to helping your friend, find out what your bank's policy is regarding the deposit of such a check.
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Yes, a U.S. Treasury check can be negotiated to a third party; however, consider that your bank may be unwilling to accept the check for deposit to your account. Many banks have adopted policies that don't allow the deposit of third-party checks except by certain businesses. That's because the bank doesn't know the 